By Grace-Marie Turner
American families, promised they would save $2,500 a year on health insurance premiums, are bracing themselves to see just how much their costs will increase again next year.
Health insurers across the country are seeking premium increases of 20% to 40% or more. Some carriers requested only modest increases, largely because they priced premiums in line with expected medical expenses in the first year. But many others found enrollees are sicker and more costly than anticipated.
Blue Cross and Blue Shield of New Mexico requested a 52% increase for 2016 individual plans, but the hike has been denied by the state’s insurance regulator.
President Obama is jawboning regulators to lower rates, but that can only go so far when plans face multimillion dollar gaps between premium income and claims payments.
To offset the cost of the Affordable Care Act’s many new mandated benefits, the most popularly priced plans have ultra-limited networks plus high out-of-pocket costs and deductibles that are nearly twice as high as employer insurance.
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The cycle of crony capitalism. Regulation to create high prices. Bloated costs from lack of competition resulting in yet higher prices. Socialization, welfare, and subsidies to preserve high prices further increasing operating costs and prices. Bankruptcy from political demands to provide services below the now bloated costs. Welcome to health care Amtrak.
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